1.

What is the expected dividend yield and capital appreciation rate for the following share of common stock. (10 points)

Po = $41

P1 = $37

D1= $2.50

2. An investment today of $250,500 is expected to generate the following cash inflows during the next 6 years. The investment has a 10% expected rate of return. What is the Net Present Value (NPV) of this investment? (10 points)

Years	Cash Inflows ($)
1	110,000
2	85,000
3	95,525
4	82,890
5	5,250
6	3,990